Octave Hotels is planning to expand in south India over the next three years to run 20 hotels with an additional 350 rooms.
According to a BusinessLine report, the mid-market brand that operates a seven-hotel chain in Bengaluru with a total inventory of 250 rooms, has adopted the lease model, wherein
it takes over the management of 20/50- room city-centre hotels that are struggling, renovates and turns them around to make them successful both in terms of profitability and
The typical lease period is eight-nine years, the report said and quoted Siddharth Goenka, Managing Director, Octave Hotels, as saying: “Our chain of seven hotels in Bengaluru
enjoys 75 per cent occupancy all year round. More important, we have achieved gross operating profits of over 30 per cent despite paying market rents for these hotels.”
He added: “We achieved this by automating manual processes, cost optimisation, using dynamic pricing and automated revenue management, and technology to track customer
feedback and align incentives of staff.”
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